investor presentation february 2020...51 global production facilities approximately 9,500 employees...

INVESTOR PRESENTATION

FEBRUARY 2020

Altra Industrial Motion Corp.

Safe Harbor Statement

2

Forward-Looking Statements

All statements, other than statements of historical fact included in this presentation are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.

These statements include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Forward-looking statements can

generally be identified by phrases such as “believes,” “expects,” “potential,” “continues,” “may,” “should,” “seeks,” “predicts,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “could,”

“designed”, “should be,” and other similar expressions that denote expectations of future or conditional events rather than statements of fact. Forward-looking statements also may relate to

strategies, plans and objectives for, and potential results of, future operations, financial results, financial condition, business prospects, growth strategy and liquidity, and are based upon financial

data, market assumptions and management's current business plans and beliefs or current estimates of future results or trends available only as of the time the statements are made, which may

become out of date or incomplete. Forward looking statements are inherently uncertain, and investors must recognize that events could differ significantly from our expectations. These

statements include, but may not be limited to, the statements related to our Business Outlook, our expectations regarding our tax rate, our expectations regarding the integration of the A&S

businesses and the impact of such acquisition on our business, including our expectations regarding achieving anticipated synergies and other cost improvements, our expectations regarding

delevering our business and our ability to delever our business, our expectations regarding growth opportunities and our ability to drive growth, changes in how we calculate certain non-GAAP

measures, expectations regarding improvements in the macro economic environment and outlooks in China and Germany, our expectations regarding our ability to serve our customers and

deliver value for our shareholders, our expectations regarding continued sales, earnings and free cash flow growth in 2020 and the Company’s guidance for full year 2020.

In addition to the risks and uncertainties noted in this presentation, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements

made. These include: (1) competitive pressures, (2) changes in political and economic conditions in the United States and abroad and the cyclical nature of our markets, (3) loss of distributors,

(4) the ability to develop new products and respond to customer needs, (5) risks associated with international operations, including currency risks, and the effects of tariffs and other trade actions

taken by the United States and other countries (6) accuracy of estimated forecasts of OEM customers and the impact of the current global economic environment on our customers, (7) risks

associated with a disruption to our supply chain, (8) fluctuations in the costs of raw materials used in our products, (9) product liability claims, (10) work stoppages and other labor issues, (11)

changes in employment, environmental, tax and other laws and changes in the enforcement of laws, (12) loss of key management and other personnel, (13) risks associated with compliance with

environmental laws, (14) the ability to successfully execute, manage and integrate key acquisitions and mergers, (15) failure to obtain or protect intellectual property rights, (16) risks associated

with impairment of goodwill or intangibles assets, (17) failure of operating equipment or information technology infrastructure, including cyber-attacks or other security breaches, and failure to

comply with data privacy laws or regulations, (18) risks associated with our debt leverage, (19) risks associated with restrictions contained in the agreements governing the Notes and the Altra

Credit Facilities, (20) risks associated with compliance with tax laws, (21) risks associated with the global recession and volatility and disruption in the global financial markets, (22) risks

associated with implementation of our ERP system, (23) risks associated with the Svendborg, Stromag, and A&S acquisitions and integration and other acquisitions, (24) risks associated with

certain minimum purchase agreements we have with suppliers, (25) risks related to our relationships with strategic partners, (26) our ability to offset increased commodity and labor costs with

increased prices, (27) risks associated with our exposure to variable interest rates and foreign currency exchange rates, (28) risks associated with interest rate swap contracts, (29) risks

associated with our exposure to renewable energy markets, (30) risks related to regulations regarding conflict minerals, (31) risks related to restructuring and plant consolidations, (32) risks

related to our acquisition of A&S, including (a) the possibility that we may be unable to achieve expected synergies and operating efficiencies in connection with the transaction within the

expected time-frames or at all and to successfully integrate A&S, (b) expected or targeted future financial and operating performance and results, (c) operating costs, customer loss and business

disruption (including, without limitation, difficulties in maintain relationships with employees, customers, clients or suppliers) being greater than expected following the transaction, (d) our ability to

retain key executives and employees, (e) slowdowns or downturns in economic conditions generally and in the markets in which the A&S businesses participate specifically, (f) lower than

expected investments and capital expenditures in equipment that utilizes components produced by us or A&S, (g) lower than expected demand for our or A&S’s repair and replacement

businesses, (h) our ability to successfully integrate the merged assets and the associated technology and achieve operational efficiencies, (i) the integration of A&S being more difficult, time-

consuming or costly than expected, (j) the inability to undertake certain corporate actions that otherwise could be advantageous to comply with certain tax covenants, (k) potential unknown

liabilities and unforeseen expenses related to the acquisition and (l) the impact on our internal controls and compliance with the regulatory requirements under the Sarbanes-Oxley Act of 2002,

(33) the risk associated with the UK’s departure from the European Union, (34) Altra’s ability to achieve the efficiencies, savings and other benefits anticipated from its cost reduction, margin

improvement, restructuring, plant consolidation and other business optimization initiatives, (35) the risks associated with transitioning from LIBOR to a replacement alternative reference rate, and

(36) other risks, uncertainties and other factors described in the Company's quarterly reports on Form 10-Q and annual reports on Form 10-K and in the Company's other filings with the U.S.

Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Except as required by applicable law, Altra does not intend to, update or alter its forward-looking

statements, whether as a result of new information, future events or otherwise.

3

Altra Snapshot

Headquartered in Braintree, Massachusetts

51 global production facilities

Approximately 9,500 employees

27 industry-leading brands averaging over 85 years of market expertise

Altra Industrial Motion Corp. Equity Snapshot

Nasdaq: AIMC

Market Cap:

Diluted Shares O/S: 64.6 million

Quarterly Dividend: $0.17 (Q1)Dividend Yield: 1.8%

$2.4 billionAs of February 13, 2020

LTM Revenues: $1.83 billion

Altra is a premier manufacturer of highly engineered products, software and services,

designing innovative solutions that create, control and transmit motion and power.

4

Industry Leading Profile

1 Refer to Appendix for GAAP to non-GAAP reconciliations

36%Q4 2019 GAAP Gross

Margin

16%Q4 2019 Non-GAAP

Operating Margin1

20%Q4 2019 Non-GAAP

Adjusted EBITDA Margin1

Automation and

Specialty (A&S)

Power Transmission

Technologies (PTT)

• Advanced servo motors,

drives and controls

• Software and custom

motion systems

• Engineered linear systems

• Precision miniature motors

• Engine retarding systems

• Engineered heavy duty

clutches and brakes

• Flexible couplings

• Gear drives and gear motors

• Electric clutches and brakes

• PT components

$224 million51% of Total Q4 Sales

$219 million49% of Total Q4 Sales

Q4 Revenues

Key Brands • Jacobs Vehicle Systems

• Kollmorgen

• Portescap

• Thomson

Key Products

• Bauer Gear Motor

• Boston Gear

• Stromag

• Svendborg

• Warner Electric

Segments

$442mQ4 2019 Revenues

Industry Leading Brand Names

Highly Engineered Products

Leading Financial Profile

$45 million20.3% of Segment Sales

$29 million13.1% of Segment Sales

Q4 Non-GAAP Income

from Operations1

Well established industry-leading brands known for global technical support and product reliability

Long History as Critical Supplier to Customers with Strong Brand Names

Expanding position across technology spectrum with highly engineered products, software & service solutions

Expanding Presence Across Technology Spectrum

Track record of continuous improvement, organic growth and developing outstanding leaders

A Proven World-Class

Business System

Excellent margin profile, 5-year margin improvement drivers could yield 425 bps

Margin Expansion Potential

Expect $1B cumulative FCF in 5 years – Target leverage ratio of 2x to 3x net debt to Adjusted EBITDA1

Strong Free Cash Flow1

Supports Quick De-Levering

Serving high-growth, high-margin end markets and specialty niche industries with attractive secular trends

Strong Market Position Across Diverse Set of End Markets

5

A $1.8 Billion Premier Industrial Company

1 Free Cash Flow and Adjusted EBITDA are Non-GAAP measure. Refer to the Appendix for a reconciliation of Non-GAPP measures.

6

• Balanced markets with exposure to attractive secular trends

• Expanding exposure to high growth regions

• High degree of collaboration with engineers at OEM customers;

strong distributor partners supporting the aftermarket

• Geographic revenues based upon point of shipment.

• Management estimates.

Balanced Diverse Global Markets

Transportation16%

Factory Automation &

Spl. Mch.11%

T&G, Ag, Construction

8%

Energy8%

Metals & Mining

6%

Mat. Hand.8%

Medical7%

A&D6%

Other30%

2019 Revenues By Market

N. America52%

Europe30%

Asia Pac.16%

ROW2%

2019 Revenues By Geography

OEM Direct69%

Distribution25%

User Direct

6%

2019 Revenues By Channel

7

Growing Exposure to Markets With Attractive

Secular Trends

ROBOTICS

Advanced servo motor systems integrated into collaborative robots

ADVANCED MATERIAL HANDLING

Software and custom programming for AGVs in

logistics and manufacturing applications

AEROSPACE & DEFENSE

Custom frameless servo motors for land and aerial drones

MEDICAL

Sterilizable miniature motors for arthroscopic surgical tools

8

Long-Standing Expertise Serving Traditional Markets

RENEWABLE ENERGY

Brakes for Offshore and Onshore Wind Turbines

TURF & GARDEN

Electromagnetic Clutches & Brakes for Commercial Lawn Mowers

MINING

Clutches, Brakes and Couplings for Electric Rope Shovels

TRANSPORTATION

Compression Release Brakes For Class 8 Trucks

9

Strategic Priorities to Drive Shareholder Value

Execute on the A&S integration; deliver $52 million synergies

• Identify and leverage best practices

• Seamless transition to activities that capture value

Deliver 425 BPS margin improvement

• Continue to deploy profit improvement initiatives

• Execute on synergies

• Capitalize on improving market conditions

De-lever and strengthen the balance sheet

• Prioritize debt pay down until leverage metrics return to historical levels of

2.0-3.0x Net Debt/ Adjusted EBITDA

Accelerate topline growth

• Effectively deploy Altra Business System tools

• Capitalize on technology sharing to accelerate innovation

• Strategically infuse capital into operating companies

World-Class Business System

LEADERSHIP

GROWTH LEAN

A framework to drive sustainable competitive advantage

and ensure superior execution of strategic initiatives

• Robust set of tools and processes systematically

identifies and eliminates waste

• Provides innovative solutions to customers with the

shortest lead time, highest quality and best

possible value

— Significant engagement with customers to understand their

requirements & improvement objectives

— Engineering teams strive to solve problems and assist in

developing new products

• Nurtures continuous improvement culture

engrained across the organization

— On-time delivery, lead-time reduction and quality products

and services

• Developing people to excel, grow and drive

continuous improvement

10

✓ Drive organic growth

✓ Capture bottom line savings

✓ Develop outstanding leaders

¹ Based on continued market improvement in high profit markets.

Direct deal synergies

Drivers of Margin Improvement

Other Direct and Indirect

Facility Consolidations

Application of FBS to Altra

• Direct materials and other savings

• Manufacturing / sales and administrative

• SG&A and strategic pricing initiatives

• Distributor leverage, supplier consolidations, other

$15mm

$52mm

~$80mm

Altra cost improvement

initiatives enhanced

through Fortive A&S

combination

Expect to achieve run rate synergies in four years;

over 50% of run rate synergies to be achieved by year two

Direct Deal Synergies ~$52mm

Volume / leverage mix¹

Drives

>425bps of

margin

improvement

Revenue

• Cross selling / access to new customers

Significant Long-Term Margin Upside

11

12

Successes

• Consolidated A&S business in Brazil into Altra’s facility

in Sao Paulo

• Exited Fortive plant and moved into new manufacturing

facility in Tianjin, China (on time and on budget)

• Completed Amherst, NY consolidation relocating

production into other Altra US locations

• Closed both the A&S and PTT sales and sourcing

offices in Shanghai and merged them into a new

common location

• Combined satellite sales offices in Beijing and Seoul

• Reduced A&S corporate headcount

• Bolstered PTT sourcing group – already seeing

benefits

• Cross-selling funnel growing

Synergies On Track

Delivered Synergies of $14.5 Million in 2019, Exceeding Year-One Target by 30%

2019 2020 2021 2022

$14.5

million

$30

million

$52

million

Cumulative Synergy Targets

Original Target

$10m - $12m

Strong Free Cash Flow

Positions Altra to Quickly De-lever

Prioritize Debt Pay Down Until Leverage

Metrics Return to 2.0-3.0x Net Debt / Adjusted EBITDA1

Free cash flow generation: >$1 billion

in five years1

Non-GAAP Adj. EBITDA1 in Q4 2019

was 20.0% 2

Paid down $150 million of debt since

closing the A&S merger3

1 Non-GAAP measures. Refer to the Appendix for a reconciliation of Audited Net Income to Non-GAAP Adjusted EBITDA and Total Debt to Net Debt

2As of December 31, 2017, Altra had $276 million of indebtedness outstanding and as of December 31, 2017 on a pro forma basis after giving effect to the

Transactions, Altra would have had $1,722.4 million of indebtedness outstanding.

13

Net Debt / LTM Adj. EBITDA1

2017 ProForma

Dec 2018 Dec 2019 Dec 2020Target

Dec 2021Target

~4.6x

3.9x

3.0x

2

3.8x3.5x – 3.7x

14

Accelerate Top Line Growth

Continued Execution of Cross Selling Plan

Leverage ABS Growth Tools

Utilize Technology, Including IIoT and Industry 4.0 Expertise,

to Capture New Customers

Deploy E-Commerce Capabilities to Address

Growing Customer Need for Digital Solutions

Case Stackers• Thomson Linear Units

• Micron Gearheads• Thomson Linear Bearings & Guides

• Kollmorgen Servo & Drives

Palletizer• Bauer Inline Gearmotors

• Boston Gear Bevel Gear Drives• Thomson Linear Actuators

• Micron Gearheads

Filling & Capping• Warner Capping Clutch

• Kollmorgen Washdow n Servos & Drives


Case Forming• Kollmorgen Servos

• Thomson Linear Units• Micron Gearheads

• Thomson Linear Bearings & Guides

Packing(Shrink Wrap)• Bauer Gearmotors

• Kollmorgen Servos & Drives


• Thomson Linear Bearings & Guides

Packing(Heat Shrink Tunnel)• Bauer High Heat

Gearmotors

Inspection• Kollmorgen Servos / Drives

• Thomson Motorized Lead Screw Actuators


• Huco Precision Couplings

Labelling• Kollmorgen Steppers


Bottle Washer (Glass Bottles)• Boston Gear Stainless

Reducers• Bauer Aseptic Gearmotors

• Kollmorgen Stainless

Servos & Drives

Conveyor• Bauer Shaft Mount Gear Motors

• Boston Gear Worm Gear Drives• Warner Clutch Brakes

• Formsprag Backstops

• TB Wood’s Belted Drives and

Elastomeric Couplings

• Thomson Linear Actuators

Loading• Warner Brakes

• Thomson Linear Actuators

Representative Altra ProductsRepresentative A&S Products

Engine Braking• Jacobs Vehicle Systems

15

A Premier Industrial Company

Long Established History as Critical Supplier to Customers

Expanding Presence Across Technology Spectrum

A Proven World-Class Business System

Leading Financial Profile With Margin Expansion Potential

Strong Free Cash Flow Supports Quick De-Levering

Markets With Strong Secular Trends

Appendix

17

Discussion of Non-GAAP Measures

The non-GAAP financial measures used in this presentation are utilized by management in comparing our operating performance on a consistent basis. We believe that these

financial measures are appropriate to enhance the overall understanding of our underlying operating performance trends compared to historical and prospective periods and our

peers. We believe that these measures provide important supplemental information to management and investors regarding financial and business trends relating to the Company's

financial condition and results of operations as well as insight into the compliance with our debt covenants. Non-GAAP financial measures should not be considered in isolation

from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their

most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to our GAAP results has been provided in the financial

tables included in this press release.

Organic Sales

Organic sales in this release excludes the impact of foreign currency translation.

Non-GAAP Net Income, Non-GAAP income from operations, Non-GAAP Diluted earnings per share, Non-GAAP operating income margin, and Non-GAAP Net Income and Non-

GAAP Diluted EPS Guidance

Non-GAAP net income, non-GAAP income from operations, non-GAAP diluted earnings per share, and non-GAAP net income and non-GAAP diluted earnings per share guidance

exclude acquisition related amortization, acquisition related costs, acquisition related stock compensation costs, restructuring and consolidation costs and other income or charges

that management does not consider to be directly related to the Company’s core operating performance. Non-GAAP diluted earnings per share is calculated by dividing non-GAAP

net income by GAAP weighted average shares outstanding (diluted). Non-GAAP operating income margin is calculated by dividing Non-GAAP income from operations by GAAP Net

Sales.

Non-GAAP gross profit

Non-GAAP gross profit excludes amortization of inventory fair value adjustment. Non-GAAP gross profit margin is calculated by dividing Non-GAAP gross profit by GAAP Net Sales.

Non-GAAP adjusted EBITDA and Non-GAAP adjusted EBITDA guidance

Adjusted EBITDA represents earnings before interest, taxes, depreciation, acquisition related amortization, acquisition related costs, restructuring costs, stock-based compensation,

asset impairment and other income or charges that management does not consider to be directly related to the Company’s core operating performance.

Non-GAAP adjusted EBITDA and Non-GAAP Adjusted EBITDA Margin

Non-GAAP adjusted EBITDA Margin is calculated by dividing Non-GAAP adjusted EBITDA by GAAP Net Sales.

Non-GAAP Free cash flow

Non-GAAP free cash flow is calculated by deducting purchases of property, plant and equipment from net cash flows from operating activities.

Non-GAAP operating working capital

Non-GAAP operating working capital is calculated by deducting accounts payable from net trade receivables plus inventories.

Net Debt

Net debt is calculated by subtracting cash from total debt.

18

Appendix

Non-GAAP Measures

Non-GAAP Net Income

(amounts in millions)

Q4 2019 Q4 2018

Net income 37.3$ (5.0)$

Restructuring costs 2.4 2.3

Loss on w rite-off of deferred f inancing costs - 1.2

Amortization of inventory fair value adjustment - 14.2

Acquisition related stock compensation expense 0.6 2.0

Acquisition related expenses - 24.3

Acquisition related amortization expense 17.5 17.9

Tax Impact of above adjustments (4.6) (14.9)

Non cash deferred tax benefit due to income tax rate

change in India (10.5) -

Non-GAAP net income * 42.7 42.0

Non-GAAP diluted earnings per share * 0.66$ (1) 0.65$ (2)

(1) tax impact is calculated by multiplying the estimated effective tax rate, 22.6% by the

(2) tax impact is calculated by multiplying the estimated effective tax rate, 24.0% by the

Non-GAAP Income from operations


Q4 2019 Q4 2018

Income from operations 52.1$ 18.2$

Restructuring costs 2.4 2.3

Acquisition related stock compensation expense 0.6 2.0

Amortization of inventory fair value adjustment - 14.2

Acquisition related amortization expense 17.5 17.9

Acquisition related expenses - 24.3

Non-GAAP income from operations * 72.6$ 78.9$

Non-GAAP Income from operations as a

percentage of net sales 16.4% 16.8%

Free Cash Flow


Q4 2019 Q4 2018

Operating Cash Flow $73.0 $57.3

Less Capex (14.8) (16.4)

Free Cash Flow $58.2 $40.9

Non-GAAP Operating Working Capital


Q4 2019 Q4 2018

Accounts Receivable $243.2 $259.8

Inventories 222.5 231.2

Accounts Payable (154.7) (175.8)

Operating Working Capital $311.0 $315.2

Net Debt


Q4 2019 Q4 2018

Total Debt $1,604.0 $1,734.0

Cash (167.3) (169.0)

Net Debt $1,436.7 $1,565.0

19

Appendix

Non-GAAP Measures

Non-GAAP Income from operations by Segment


Pow er

Transmission

Technologies

Automation

and

Specialty Corporate Total

Income from operations 25.5$ 28.7$ (2.1)$ 52.1$

Restructuring costs 0.9 1.5 - 2.4

Acquisition related stock compensation expense - - 0.6 0.6

Acquisition related amortization expense 2.3 15.2 - 17.5

Non-GAAP income from operations * 28.7$ 45.4$ (1.5)$ 72.6$

Income from operations as a percent of Segment

net sales 13.1% 20.3% 16.4%

Quarter ended December 31, 2019

Reconciliation of GAAP to Non-GAAP Operating Margin


GAAP

Operating

Income Adjustments

Non-GAAP

Operating

Income

Net sales 441.9$ -$ 441.9$

Cost of sales 284.5 - 284.5

Gross Profit 157.4 - 157.4

Operating expenses

Selling, general and administrative expenses 88.2 18.1 70.1

Research and development expenses 14.7 - 14.7

Restructuring costs 2.4 2.4 -

Income from operations 52.1$ 20.5$ 72.6$

GAAP and non-GAAP Income from operations as a

percent of net sales 11.8% 16.4%

Quarter ended December 31, 2019

*Reconciliation of 2020 Non-GAAP Net Income

Guidance and Diluted EPS Guidance (Amounts in millions except per share information)

Net Income per Share Diluted

Restructuring and consolidation costs 2.0 - 5.0

Acquisition related stock compensation expense 1.8 - 2.0

Acquisition amortization expense 68.0 - 70.0

Tax impact of above adjustments**

Non-GAAP Net Income

** Tax impact is calculated by multiplying the effective tax rate for the period of 22.0%-

24.0% by the above items.

Fiscal Year

2020

Fiscal Year 2020

Diluted earnings

per share

$99.0 - $107.9 $1.53 - $1.67

$155.0 - $168.0 $2.40 - $2.60

(15.8) - (16.9)

*Reconciliation of 2020 Non-GAAP Adjusted EBITDA

Guidance (Amounts in millions )

Net Income

Interest Expense

Tax Expense

Depreciation Expense

Amortization Expense

Stock Based Compensation

Restructuring and consolidation costs 2.0 - 5.0

Non-GAAP Adjusted EBITDA

Fiscal Year 2020

$99.0 - $107.9

$340.0 - $360.0

70.0 - 67.3

31.0 - 33.4

57.0 - 62.0

68.0 - 70.0

13.0 - 14.4

20

Appendix

Non-GAAP Adjusted EBITDA Reconciliation

EBITDA Reconciliation


Q1 2019 Q2 2019 Q3 2019 Q4 2019 LTM

Net Income $35.2 $29.0 $25.7 $37.3 $127.2

Asset Impairment and Other, Net 1.3 (0.3) (1.3) 0.4 0.1

Taxes 10.3 9.1 5.0 (3.4) 21.0

Interest Expense, net 19.8 18.6 18.2 17.2 73.8

Depreciation Expense 14.3 14.6 14.6 14.5 58.0

Amortization Expense 17.8 17.6 17.5 17.5 70.4

Acquisition related expenses 0.5 0.2 - - 0.7

Stock Compensation Expense 3.5 3.5 3.1 3.5 13.6

Restructuring costs 2.3 3.2 6.2 2.4 14.1

Non-GAAP Adjusted EBITDA $105.0 $95.5 $89.0 $89.4 $378.9

Non-GAAP Adjusted EBITDA Margin 21.7% 20.5% 20.1% 20.2% 20.7%

21

Net Income to Adjusted EBITDA | (US$ in millions)

Altra Net Income to Adjusted EBITDA

(US$ in millions)

Year Ended December 31,

2017

Net Income $ 51.4

Interest Expense, Net 7.7

Provision for Income Taxes 19.7

Depreciation Expense 26.5

Amortization Expense 9.5

EBITDA $ 114.8

Asset Impairment and Other, Net 1.1

Loss on Write-off of Deferred Financing and

Extinguishment of Convertible Debt1.8

Acquisition Related Expenses 2.2

Loss on Partial Settlement of Pension Plans 1.7

Amortization of Inventory Fair Value Adjustment 2.3

Stock Compensation Expense 5.3

Supplier Warranty Settlement -

Restructuring and Consolidation Expense 4.1

Warranty Provision Related to Svendborg Acquisition -

Legal Fees Associated with Pursuit of Unfair Trade

Remedy-

Adjusted EBITDA $ 133.3

Source: Company filings

Fortive A&S Net Income to Adjusted

EBITDA (US $ millions)


2017

Net Earnings $ 151.7


Provision/(Benefit) for Income Taxes 41.0

Depreciation and Amortization Expenses 15.8

EBITDA $ 209.0


Corporate Allocations 17.4

Additional Operational Costs to Altra (2.5)

Adjusted EBITDA $ 228.3

22

Reconciliation to Further Adjusted Pro Forma

EBITDA and Free Cash Flow | (US$ in millions)


Reconciliation to Further Adjusted Pro Forma EBITDA 2017

Net Income $ 78.8


Provision for Income Taxes 23.5

Depreciation Amortization Expenses 120.3

Pro Forma EBITDA $ 314.4

Asset Impairment and Other, Net 1.1

Loss on Write-off of Deferred Financing and Extinguishment of Convertible Debt 1.8

Acquisition Related Expenses 2.2

Loss on Partial Settlement of Pension Plans 1.7

Amortization of Inventory Fair Value Adjustment 11.2


Supplier Warranty Settlement 0.0

Restructuring and Consolidation Expense 4.1

Corporate Allocations 17.4

Additional Operational Costs (2.5)

Adjusted Pro Forma EBITDA $ 361.6

Expected Cost Savings

Further Adjusted Pro Forma EBITDA


Reconciliation to Free Cash Flow 2017

Altra Net cash provided by operating activities $ 80.6

Altra Purchase of property, plant and equipment (32.8)

Altra Free Cash Flow 47.8

Fortive A&S Net cash provided by operating activities 171.5

Fortive A&S Purchase of property, plant and equipment (25.0)

Fortive A&S Free Cash Flow 146.5

Pro Forma Free Cash Flow $ 194.3

Source: Company filings

investor presentation february 2020...51 global production facilities approximately 9,500 employees...

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